A company reports the following amounts at the end of the year (before any year-end adjustment).
Record the adjustment for uncollectible accounts (1)using the percentage-of-receivables method,assuming the company estimates 10% of receivables will not be collected,and (2)using the percentage-of-credit-sales method,assuming the company estimates 2% of credit sales will not be collected.

Question

A company reports the following amounts at the end of the year (before any year-end adjustment).
  Record the adjustment for uncollectible accounts (1)using the percentage-of-receivables method,assuming the company estimates 10% of receivables will not be collected,and (2)using the percentage-of-credit-sales method,assuming the company estimates 2% of credit sales will not be collected.

Quizplus · Accepted Answer

The Answer of A company reports the following amounts at the end of the year (before any year-end adjustment).
  Record the adjustment for uncollectible accounts (1)using the percentage-of-receivables method,assuming the company estimates 10% of receivables will not be collected,and (2)using the percentage-of-credit-sales method,assuming the company estimates 2% of credit sales will not be collected.

A Company Reports the Following Amounts at the End of the Year